Globalstar Announces First Quarter 2018 Results

Jay Monroe, Chairman and Chief Executive Officer of Globalstar,
commented, “In late April, after our quarter ended, we announced a
transformative transaction to merge Globalstar with FiberLight and
almost $400 million of other assets to create a diversified telecom
company with assets spanning satellite, spectrum and fiber. We expect
that the combined company will have a fortified balance sheet, generate
significant cash flow and will be well positioned for the evolution of
next-generation networks. We look forward to closing the transaction in
the third quarter."

Mr. Monroe continued, "We are pleased with continued growth in the core
satellite business and to see this reflected in the first quarter
financial results. Increased ARPU across all revenue streams drove a 17%
increase in total revenue. We recorded net income during the quarter due
to a non-cash derivative gain resulting primarily from changes in our
stock price while producing strong Adjusted EBITDA growth of 39% over
the prior year's first quarter.

In April, we released our highly anticipated Sat-Fi2TM, the
first Duplex product utilizing our next-generation ground
infrastructure, providing reliable satellite communications via any
Wi-Fi enabled smart device. In late March, we also released our latest
Simplex device, SmartOne SolarTM, a solar-powered asset
tracking device that expands the Simplex market by addressing operations
in remote areas that would otherwise go unserved or underserved without
solar capabilities. Our new two-way SPOT product is launching imminently
and will allow users to communicate in remote areas like never before,
further bolstering our product line up. We also continue to expand into
other service offerings including the launch of Globalstar Automotive,
which will serve the connected autonomous vehicle market. On the
spectrum front, we achieved "working item" status at the 3GPP meeting in
Chennai, India, keeping us on schedule for standardization."

FIRST QUARTER FINANCIAL REVIEW

Revenue

Total revenue for the first quarter of 2018 increased by $4.0 million,
or 17%, from the first quarter of 2017. This increase resulted primarily
from higher service revenue across all core revenue streams, driven by
growth in ARPU. Partially offsetting this increase was a decrease in
subscriber equipment sales.

Service revenue increased $4.5 million, or 21%, in the first quarter of
2018 compared to the first quarter of 2017. The majority of this
increase resulted from higher SPOT and Duplex service revenue, which
increased $2.6 million and $1.2 million, respectively. Higher SPOT and
Duplex ARPU were the main drivers for this growth, increasing 18% and
23%, respectively, from the first quarter of 2017. Rate plan increases
continue to be the primary driver for higher ARPU. Fluctuations in our
average subscriber base also impacted service revenue this quarter, with
SPOT subscribers increasing 5% and Duplex subscribers decreasing 6%.
Also contributing to the increase in service revenue was a $0.7 million
increase in Simplex service revenue, driven by increases in both ARPU
and average subscribers.

Subscriber equipment sales revenue declined $0.5 million, or 16%, due
primarily to a decrease in Duplex equipment revenue. Volume for our
Duplex equipment was lower due to our continued management of remaining
phone inventory anticipating the launch of Sat-Fi2TM in
April. Offsetting this decline was an increase in SPOT equipment revenue
which is expected to accelerate after the release of the next generation
product.

Loss from Operations

Loss from operations decreased $2.1 million, or 14%, from $15.1 million
in the first quarter of 2017 to $13.0 million in the first quarter of
2018 due primarily to a $4.0 million increase in total revenue, for the
reasons discussed above. Higher operating expenses partially offset this
increase due primarily to a 20% increase in marketing, general and
administrative (MG&A) costs; cost of services were flat and cost of
subscriber equipment sales increased 5%. The increase in MG&A was driven
by the addition of personnel, both internal and external, to support our
strategic initiatives, including spectrum related activities and other
technology opportunities, such as our IoT and connected car product
development.

Net Income (Loss)

Net income (loss) fluctuated from a loss of $20.2 million in the first
quarter of 2017 to income of $87.9 million in the first quarter of 2018.
The primary reason for this change was a higher non-cash derivative
gain, up from $3.2 million in the first quarter of 2017 to $108.9
million in the first quarter of 2018. The gain recorded during the first
quarter of 2018 resulted from variations in several valuation inputs,
including the decline in the Company's stock price from December 31,
2017 to March 31, 2018 as well as shorter remaining estimated term of
the instruments.

Adjusted EBITDA

Adjusted EBITDA increased 39% to $7.5 million during the first quarter
of 2018 driven primarily by a $4.0 million, or 17%, increase in total
revenue, offset partially by a $1.9 million increase in total operating
expenses (excluding EBITDA adjustments). The increase in operating
expenses during the first quarter of 2018 resulted from higher MG&A
expenses, as discussed above.

MERGER AGREEMENT

On April 25, 2018, Globalstar announced it signed a merger agreement
with Thermo Acquisitions, Inc. (Thermo Acquisitions) pursuant to which
the following assets will be combined with Globalstar: metro fiber
provider FiberLight, LLC (FiberLight), 15.5 million shares of common
stock of CenturyLink, Inc. (NYSE: CTL) (CenturyLink), $100 million of
cash and minority investments in complementary businesses and assets of
$25 million in exchange for Globalstar common stock valued at
approximately $1.65 billion, subject to adjustments. Thermo Acquisition
is controlled by Jay Monroe, Executive Chairman of the Board of
Directors and Chief Executive Officer of Globalstar. At closing, we
expect that the parent company will be renamed Thermo Companies, Inc.,
and its stock will continue to trade publicly. The transaction has been
unanimously recommended by the Special Committee of the Board of
Directors of Globalstar, consisting entirely of independent directors,
and unanimously approved by the full Board of Directors. The merger is
expected to close in the third quarter of 2018.

The merger is expected to create a fundamentally stronger company with
significantly reduced leverage and diversified holdings serving the
global telecommunications industry. The anticipated combined Adjusted
EBITDA of the pro forma Company is projected to be at least 4x
standalone Globalstar. The pro forma cash flow of the combined Company
is expected to be derived from five principal sources including (i)
satellite operations, (ii) leasing or other monetization revenue from
spectrum, (iii) FiberLight operations, (iv) dividend income and (v)
other Thermo Investments’ returns. The pro forma Company is expected to
benefit from Globalstar’s $1.7 billion U.S. net operating losses
allowing growth in a tax efficient manner. By materially improving the
combined Company’s liquidity position, Globalstar believes the merger
will best position the Company for monetizing its 2.4 GHz terrestrial
spectrum in addition to maximizing the global use of its licensed
spectrum.

Globalstar has reached an agreement in principle with its lenders on an
amendment of its BPIFAE (formerly known as COFACE) senior debt facility,
which is subject in all respects to lender and BPIFAE committee
approvals as well as satisfactory final due diligence. Additionally,
final amended terms will be subject to documentation in a binding
agreement to be agreed among the parties that will be effective
concurrent with the closing of the merger. The agreement in principle
provides for annual deferrals of principal amortization up to $30
million and a fixed margin of 3.25% over 6 month LIBOR, both subject to
liquidity tests performed over time.

Upon completion of the merger, the Company expects to initiate a rights
offering of up to $100 million for minority shareholders on terms to be
agreed. It is anticipated that the rights offering would be consummated
approximately 45 days following closing, is expected to be available to
holders of record on the date of closing and will include an
over-subscription privilege allowing for the subscription of additional
shares with allotments otherwise on a pro rata basis.

CONFERENCE CALL

The Company will conduct an investor conference call on May 10, 2018 at
8:30 a.m. ET to discuss its first quarter 2018 financial results.

Details are as follows:

Conference Call:

8:30 a.m. ETInvestors and the media are encouraged to listen
to the call through the Investor Relations section of the
Company's website at www.globalstar.com/corporate.
If you would like to participate in the live question and answer
session following the Company's conference call, please dial 1
(800) 708-4540 (US and Canada), 1 (847) 619-6397 (International)
and use the participant pass code 46617030.

Audio Replay:

A replay of the earnings call will be available for a limited time
and can be heard after 11:00 a.m. ET on May 10, 2018. Dial: 1 (888)
843-7419 (US and Canada), 1 (630) 652-3042 (International) and pass
code 4661 7030#.

About Globalstar, Inc.

Globalstar is a leading provider of mobile satellite voice and data
services. Customers around the world in industries such as government,
emergency management, marine, logging, oil & gas and outdoor recreation
rely on Globalstar to conduct business smarter and faster, maintain
peace of mind and access emergency personnel. Globalstar data solutions
are ideal for various asset and personal tracking, data monitoring,
SCADA and IoT applications. The Company's products include mobile and
fixed satellite telephones, the innovative Sat-Fi satellite hotspot,
Simplex and Duplex satellite data modems, tracking devices and flexible
service packages.

Note that all SPOT products described in this press release are the
products of SPOT LLC, a subsidiary of Globalstar, which is not
affiliated in any manner with Spot Image of Toulouse, France or Spot
Image Corporation of Chantilly, Virginia.

This press release contains certain statements that are “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are based on
current expectations and assumptions that are subject to risks and
uncertainties which may cause actual results to differ materially from
the forward-looking statements. Forward-looking statements, such as the
statements regarding our expectations with respect to the pursuit of
terrestrial spectrum authorities globally, future increases in our
revenue and profitability and other statements contained in this release
regarding matters that are not historical facts, involve predictions.
Any forward-looking statements made in this press release are believed
to be accurate as of the date made and are not guarantees of future
performance. Actual results or developments may differ materially from
the expectations expressed or implied in the forward-looking statements,
and we undertake no obligation to update any such statements. Additional
information on factors that could influence our financial results is
included in our filings with the Securities and Exchange Commission,
including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q
and Current Reports on Form 8-K.

In addition forward-looking statements related to the merger, such as
the structure, timing and completion of the proposed transaction, future
financial and operating results, benefits and synergies of the proposed
transaction, future opportunities for the combined company, the ability
of the parties to satisfy the conditions to closing contained in the
Merger Agreement, the complete of the 2017 FiberLight audit and the
results thereof, and any adjustments to the merger consideration based
on the last twelve month Adjusted EBITDA of FiberLight and other
statements contained in this release regarding matters that are not
historical facts, involve predictions. Any such forward-looking
statements made in this press release are believed to be accurate as of
the date made and are not guarantees of future performance. Actual
results or developments may differ materially from the expectations
expressed or implied in the forward-looking statements, and we undertake
no obligation to update any such statements. These risks, as well as
other risks associated with the transaction, will be more fully
discussed in the proxy statement/prospectus that will be included in the
Registration Statement on Form S-4 that will be filed with the SEC in
connection with the transaction.

EBITDA represents earnings before interest, income taxes,
depreciation, amortization, accretion and derivative (gains)/losses.
Adjusted EBITDA excludes non-cash compensation expense, reduction in
the value of assets, foreign exchange (gains)/losses and certain
other non-recurring charges as applicable. Management uses Adjusted
EBITDA in order to manage the Company's business and to compare its
results more closely to the results of its peers. EBITDA and
Adjusted EBITDA do not represent and should not be considered as
alternatives to GAAP measurements, such as net income/ (loss). These
terms, as defined by us, may not be comparable to similarly titled
measures used by other companies. In connection with the adoption of
Accounting Standards Updates ("ASU") No. 2017-07, Compensation-Retirement
Benefits: Improving the Presentation of Net Periodic Pension Cost
and Net Periodic Postretirement Benefit Cost, the Company has
recast Adjusted EBITDA in prior periods and in connection with the
adoption of ASU No. 2014-09, Revenue from Contracts with
Customers, the Company has not recast Adjusted EBITDA in prior
periods.

The Company uses Adjusted EBITDA as a supplemental measurement of
its operating performance. The Company believes it best reflects
changes across time in the Company's performance, including the
effects of pricing, cost control and other operational decisions.
The Company's management uses Adjusted EBITDA for planning
purposes, including the preparation of its annual operating
budget. The Company believes that Adjusted EBITDA also is useful
to investors because it is frequently used by securities analysts,
investors and other interested parties in their evaluation of
companies in similar industries. As indicated, Adjusted EBITDA
does not include interest expense on borrowed money or
depreciation expense on our capital assets or the payment of
income taxes, which are necessary elements of the Company's
operations. Because Adjusted EBITDA does not account for these
expenses, its utility as a measure of the Company's operating
performance has material limitations. Because of these
limitations, the Company's management does not view Adjusted
EBITDA in isolation and also uses other measurements, such as
revenues and operating profit, to measure operating performance.

GLOBALSTAR, INC.

SCHEDULE OF SELECTED OPERATING METRICS

(In thousands, except subscriber and ARPU data)

(Unaudited)

Three Months Ended

March 31,

2018

2017

Service

Equipment

Service

Equipment

Revenue

Duplex

$

8,783

$

431

$

7,598

$

899

SPOT

12,962

1,433

10,397

1,236

Simplex

3,089

804

2,416

907

IGO

209

70

211

139

Other

967

1

859

(10

)

$

26,010

$

2,739

$

21,481

$

3,171

Average Subscribers

Duplex

69,033

73,444

SPOT

293,561

278,790

Simplex

332,813

295,576

IGO

31,200

37,768

ARPU (1)

Duplex

$

42.41

$

34.48

SPOT

14.72

12.43

Simplex

3.09

2.72

IGO

2.23

1.86

(1)

Average monthly revenue per user (ARPU) measures service revenues
per month divided by the average number of subscribers during that
month. Average monthly revenue per user as so defined may not be
similar to average monthly revenue per unit as defined by other
companies in the Company's industry, is not a measurement under GAAP
and should be considered in addition to, but not as a substitute
for, the information contained in the Company's statement of
operations. The Company believes that average monthly revenue per
user provides useful information concerning the appeal of its rate
plans and service offerings and its performance in attracting and
retaining high value customers. In connection with the adoption of
ASU No. 2014-09, Revenue from Contracts with Customers, the
Company has not recast Adjusted EBITDA in prior periods.